The latest downstream news from Europe

Denmark

The Port of Frederikshaven, Steeper Energy and Aalborg University are forming a partnership to build the world’s first biomass based plant in Denmark. The bio refinery will produce sulfur free marine fuel from sustainable sources and is expected to be able to supply 100 000 vessels a year. The initial capacity of the plant is expected to be between 50 000 and 100 000 tpy.

European Policy

The European parliament has reportedly been told by Directors of some of Europe’s leading energy companies that they are losing confidence in energy policies. The Chief Executive of GDF Suez and the Chef Executive of Eni addressed the European Union last week about these concerns. A conglomerate of companies believes that the uncertainty in the EU sector was having an impact on private investments in the energy industry. The companies are looking for a standardisation of EU policies and finance for energy infrastructure programs.

France

Total has voiced plans to invest 160 million euros in its Carling, Lorraine petrochemical platform. The company are looking to make this investment to adapt the facility by 2016 and restore its competitive position. As part of the plans the steam cracker will be taken offline in the second half of 2015 as it is making a significant loss.

Ireland

Phillips 66 has said that the Whitegate refinery, Cork has some interested buyers and may not have to close. News of potential buyers for the 71 000 bpd facility was welcomed by the 200 staff. The facility is 55 years old and is indeed need of modernisation, which is believed to be why buyers have not been in abundance. This is Ireland’s only refinery.

Northwest Europe

Due to lower prices, when compared to butane, propane is the preferred feedstock for petrochemical users in Northwest Europe. Propane, at the time of writing was US$ 100/t cheaper than butane.

PIRA Energy Group reports that Brent crude prices have moved higher and are likely to stay strong. On the week, US commercial stocks increased. In Japan, crude imports rose sufficiently to produce a moderate stock build.